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Editor Judith Taylor, judith.taylor@icis.com
NOTE: For full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.
There were no changes to the North American fatty acid ranges given above, as market sources considered these to be largely representative during the week ended 3 March.
Market participants had mixed viewpoints about the rubber grade (RBG) spread, but the 1-cent variations discussed were more related to customer/end-use differences than to broad price trends.
Sellers said fatty acid demand was lacklustre during the first two weeks of 2010, with slight improvement expected to slowly emerge late March due to seasonal upticks.
In line with slow demand, tallow fatty acid market players said capacity utilisation was down, but percents were not available.
Fatty acid sales involved in plasticizer additives were sluggish, according to some sources. Soft conditions were promoted by the ongoing slack in construction segments that use plastic pipe, among others.
In Asia, regional sources discussed a tight market due to less fractionation, trending in a similar direction as tallow-based US fatty acid production.
Rising feedstock vegetable oil prices were blamed for Asian fatty acid producers choosing less fractionation. The likely result expected of the cutback in production were higher prices to emerge for Asian imports of C8 caprylic, C12 lauric, C14 mrystic and C16 palmitic, regional sources said.
This week on ICIS news ( www.icis.com ):
02-Mar-10 08:32 Asian fatty alcohols market bullish post Lunar New Year
02-Mar-10 07:41 Asian glycerine prices kick off on strong note for March
02-Mar-10 16:45 US Senate introduces biodiesel blending credit
26-Feb-10 23:21 InterviewBayer MaterialScience business to strengthen in 2010
25-Feb-10 22:32 Large US natural gas draw fails to lift prices above $5/MMBtu